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Non-Profit Organization Tax and Regulatory Reporting Requirements

As the public's scrutiny of non-profit organizations increases, the Form 990 (or Form 990-PF for private foundations) has become a key source of information for those who wish to evaluate the manner in which an organization operates. Whether it is a potential grantor, the press, Attorney General or other governmental agency, the Form 990 may be the document upon which preliminary (and final) judgments about the organization are based. Accordingly, it is critical that the Form 990 reflects fully and accurately the relevant and required information about the organization.

Failure to completely or properly report may result in penalties on the organization or organization managers. Public criticism may also result from improper reporting. More importantly, however, the preparation of the Form 990 presents an opportunity for the organization to promote its programs and to describe to the public the manner in which it is achieving its exempt purposes. While financial statements may provide the organization and its management with important information regarding operations, the tax return is becoming the vehicle by which the public measures the value of the organization to the community.

We view the required annual returns and reports as an opportunity for the organization to present itself in the most favorable light possible. As a result, we spend significant time with the organization to ensure that the information contained in its external reports is not only accurate, complete and in full compliance with regulatory requirements, but also serves to promote the programs and activities that provide value to the community.

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